East of England businesses are now at greater risk of insolvency than at the start of 2017, according to new research by the Eastern branch of restructuring and insolvency trade body R3.

July’s figures, compiled using Bureau Van Dijk’s Fame database, show that over one in four businesses in the region – 27.9 per cent – are now at higher than normal risk of insolvency. This is equivalent to over 95,000 companies and contrasts with January’s figure, which was over three points lower at 24.6 per cent.

The R3 Eastern research also highlights that technology and IT continues to be among the highest risk sectors in the East of England, with over a third – 35.9 per cent – of firms at above average risk of insolvency.

Over the past month, sectors showing the greatest increase in insolvency risk include manufacturing, agriculture, hotels and pubs, with no decline shown by any of the business sectors monitored by R3.

R3 Eastern chairman Mark Upton, a partner at Ensors Chartered Accountants in Cambridge, said: “Having been flat last year and having fallen slowly from a post-financial crisis peak before that, corporate insolvency numbers are starting to move up again.

“Low interest rates and creditor forbearance have helped keep corporate insolvency volumes relatively low during 2017, but the economic challenges have definitely started to increase in recent months and are putting even more pressure on vulnerable businesses.

“The hurdles are likely to get higher going forward as businesses deal with the instability surrounding Brexit, the introduction of the National Living Wage, the rollout of pension auto-enrolment to smaller firms and a potential increase in interest rates.

“Business owners should therefore monitor their finances carefully and plan for all eventualities. It is vital to remain alert to signs of trouble and be ready to adapt to the changing economic landscape.”